I guess the bottom was NOT in at $1630.

So what happened to gold in the last 24-hours? According to Jim Sinclair, “Today’s pounding of gold amid the announcement of the Federal Reserve’s minutes was ‘pure manipulation’ executed almost without camouflage.” But as it is manipulation “against the tide of the market, it will fail as gold goes to $4,500.”

Sinclair’s latest comments on Tuesdays and Wednesday’s events – This should really piss you off!In The News Today
April 4, 2012, at 12:59 pm Next UpMarket Nuggets: RBC’s Gero: Payrolls, Sell Stops Add To Pressure In Gold After FOMC Minutes4 April 2012, 9:10 a.m.
By Kitco News (Kitco News) – A rise in private-sector U.S. payrolls and technically oriented selling have added to the pressure in Comex gold, says George Gero, vice president and precious-metals strategist with RBC Capital Markets Global Futures. Gold slid Tuesday afternoon after the release of Federal Open Market Committee minutes from the March meeting reduced prospects for a third round of quantitative easing. Gero says there has been “dramatic selling in gold as good news for the economy became bad news (for gold) yesterday as (the) FOMC dashed hopes of more easing and QE3 coming. Today’s added jobs also (makes it) look like easing may not be a longer-term prospect…” An ADP report says U.S. private-sector payrolls rose by 209,000 in March. Markets tend to monitor this for clues on what to expect from the government’s monthly non-farm payrolls report, scheduled for release on Friday. Gero reports that sell stops—pre-placed orders triggered when certain chart points are hit–were triggered in gold as it fell below the $1,650 and $1,625 areas. As of 9 a.m. EDT, Comex June gold was $48.50 lower to $1,623.50 an ounce. Much of that loss was in after-hours screen trading Tuesday, since the change for the day is based on the previous session’s pit close, which occurred half an hour ahead of the FOMC minutes.By Allen Sykora of Kitco News
This is the typical type of analysis from the cone-heads who use “official” government data to base their analysis on. If you believe, as we do, that the economy is NOT showing any meaningful improvement and that the Fed has NO choice but to continue with QE to INFINITY, then the above report is nonsense. But that is the fuel for the funds to dump gold and jump into another sector. Remember, these markets are volatile because the funds have no long-term views or positions and move around like rats in a cage, from one side to the other at the slightest provocation. I suggest you pay attention to Jim Sinclair (no economic growth, MOPE and QE to Infinity) and John Williams (no meaningful statistical data supporting growth in the economy).

If you still need more convincing, read this article by Stanford professor Edward Lazear: Stanford’s Lazear: US Suffering Worst Economic Recovery in HistoryTuesday, 03 Apr 2012 07:27 AMBy Forrest JonesThe United States is experiencing its worst recovery in U.S. history thanks to excessive regulations and punitive taxes, writes Edward Lazear, a former economic adviser to President George W. Bush and Stanford professor.Economies normally snap back when recovering from recessions, but that hasn’t been the case this time around.From 1947 to 2007, the average annual growth rate for the U.S. was 3.4 percent, Lazear writes in a Wall Street Journal opinion piece.Since the recovery began from the Great Recession, growth has averaged 2.4 percent, Lazear adds, citing National Bureau of Economic Research data.While many argue the financial nature of the recent recession means recovery should be slow, other recoveries stemming from similar downturns in the past didn’t go as tepidly as today.Even the Great Depression saw stronger snapbacks between downturns.“Threats of higher taxes, the constantly increasing regulatory burden, the failure to pursue an aggressive trade policy that will open markets to U.S. exports, and the enormous increase in government spending all are growth impediments,” writes Lazear, who was chairman of the President’s Council of Economic Advisers from 2006-2009. “Policies have focused on short-run changes and gimmicks — recall cash for clunkers and first-time home buyer credits — rather than on creating conditions that are favorable to investment that raise productivity and wages,” writes Lazear, now a professor at Stanford University’s Graduate School of Business and a Hoover Institution fellow.Meanwhile, the U.S. economy is showing signs of improvement.Recently, the Thomson Reuters/University of Michigan’s consumer sentiment index for March rose to 76.2, the highest since February 2011, and surpassing analysts’ expectations.The Commerce Department recently reported that personal spending rose 0.8 percent in February, the most in seven months and above expectations, while factory output is showing improvement as well, with the Institute for Supply Management reporting that its manufacturing index rose to 53.4 in March from 52.4 in February, also beating expectations.Still, unemployment rates remain well above pre-crisis levels at 8.3 percent, a level Federal Reserve Chairman Ben Bernanke deems unacceptable, hinting rates will stay low and the Fed will remain vigilant.“Further significant improvements in the unemployment rate will likely require a more rapid expansion of production and demand from consumers and businesses, a process that can be supported by continued accommodative policies,” Bernanke told the National Association for Business Economics, according to a copy of his speech.One snag facing economic recovery has been workforce mobility.Often individuals or families in the U.S. are willing to pick up and move across the country in search of work, but many cannot since they owe more on their homes than they are worth or do not have the necessary skills needed to land a job after being out of work for so long.The percentage of people who changed residences between 2010 and 2011 came to 11.6 percent, the lowest recorded rate since the Current Population Survey began collecting statistics on the movement of people in the United States in 1948, according to U.S. Census Bureau data.The rate, which hit 20.2 percent in 1985. Meanwhile, the country today is showing a little nostalgia for its recession-era past, when families packed up and headed out West in search of the better times.Interest in newly released 1940 U.S. Census information has been so hot that users flocking to the National Archives site to learn more about their family history have paralyzed the site just after the records went public for the first time.Officials from the U.S. National Archives told The Associated Press that the site registered more than 22 million hits in just four hours on Monday.Read this Article on MoneyNews.com
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Jim Sinclair’s position is the Fed has no alternative to QE to infinity because if they should stop, the stock market would drop several thousand points. The stock market needs “liquidity” and the “liquidity” is supplied by the Fed. Without it, the markets and the economy collapse. The same is true for Europe too.

Also, the major trend is DOWN and the Fed and banks can’t win if they try and fight the “headwind.” They can only succeed if they are manipulating the market in the direction of the headwind, not when they fight it.

Days like today are tough to take but get used to it because that is what the market will look like going forward – two steps forward and one back, the “back” being caused by the five major bullion banks who constantly push the gold and silver market around, but in the end; as Uncle Jimmie says, gold will hit $4,500.

2 Comments

I am a new and uneducated investor in intrinsic precious metals, and I’m hearing a LOT about how the markets are BOTH “unpredictable” AND manipulated. As a long time state and federal officer prior to my current occupation, I am well aware that humans don’t “do random” very well. We had a mantra…if a human did it, someone else can figure it out. Wouldn’t manipulation make stochastic randomness even LESS random due to human pattern-bias behavior? Even if they used algorithms, someone is operating the overall manipulative schematic. It is common practice to factor these things into all high levels of psycho-forensic sciences. So why would manipulation of the markets be a problem to the savvy and experienced trend analysts and mathematician? It might even help in trend analysis when factored in through historical manipulative analysis. Your comments? Thanks!

The trends are clear and quite predictable. You should read Ranting Andy Hoffman’s daily, presented by Miles Franklin every afternoon. He covers the predictability of the manipulation in almost every issue. And there are many hedge funds who do trade along with the cartel. We here, at Miles Franklin, are not traders and advocate taking possession of physical metals and holding them. By 2015, the wisdom of this choice will be obvious. Best estimates I get call for gold at anywhere from $3500-$4500, and maybe even higher. Buying at under $1700 is a no-brainer. The manipulation has NO affect on those who buy and hold and are willing to wait for the market to peak in the next few years.

The manipulation is only a problem for short-sighted investors and less than talented traders. As for me – I buy the dips.

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